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Please check my work, as I was a bit unsure of it, and then help me to better understand the answers on the bottom of

Please check my work, as I was a bit unsure of it, and then help me to better understand the answers on the bottom of page.

Input Data

Shareholders Equity (SE)

$1,500,000

Net Income (NI)

$850,000

Stock Price (SP)

$50

EPS

$4

No. of outstanding shares

300,000,000

Goodwill

$100,000

Intangibles

$75,000

Total Assets

$3,000,000

Net Worth Method

SE (GW+IT)

$1,500,000 ($100,000 +$75,000) =$1,325,000

Net Income Method

NI *5 $850,000 *5 = $4,250,000

Price/Earnings Ratio Method

(SP/EPS)*NI

($50/4)*$850,000=$10,625,000

Outstanding Shares Method

#OS*SP $300,000,000 *$50 = $15,000,000,000

Average Method

$3,754,050,000 Av of all 4 methods

Determine, recommend and defend the best corporate evaluation method. Identify any concerns that you have about these methods

As a future decision maker concerned about either selling or purchasing companies, explain why it is important to have a reasonable knowledge of what the firm is worth. Besides these methods, what else could a decision maker do to obtain other data points on corporate worth on assets?

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